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City of Vaughan

Vaughan Economic and Business Update – December 2024

Highlights

  • The national Consumer Price Index rose 2.0 per cent year-over-year in October, following a 1.6 per cent increase in September.
  • The national unemployment rate rose to 6.8 per cent in November, while the employment rate held steady at 60.6 per cent.
  • National Real Gross Domestic Product (GDP) grew 0.1 per cent in September, after remaining essentially unchanged in August.
  • The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in other services, retail trade, and professional, scientific, and technical services industries in November.
  • Held in Vaughan, the 12th annual Pentola d’Oro Awards celebrated best-in-class in the food and beverage industry.
  • The recently announced $9 million federal funding for UBC’s Bridge to Red Seal project and Vaughan’s $26 million investment in LiUNA 183’s new training center address labour shortages in skilled trades.
  • Vaughan-headquartered Longo’s was named one of Canada’s Most Admired Corporate Cultures.

SELECT Economic Indicators

The national consumer Price Index rose 2.0 per cent year-over-year in October, following a 1.6 per cent increase in September.

The national Consumer Price Index (CPI) rose 2.0 per cent year-over-year in October, up from a 1.6 per cent increase in September. Gasoline prices fell to a lesser extent in October (-4.0 per cent) compared to September (-10.7 per cent). Despite a smaller year-over-year decline in gasoline prices, the CPI rose 0.3 per cent on a seasonally adjusted monthly basis. In Ontario, the CPI rose 2.0 per cent year-over-year in October, up from a 1.9 per cent increase in September. Canadians continue to feel the impact of higher price levels for day-to-day basics, with rent increasing by 21.6 per cent since October 2021 and prices for groceries seeing its third consecutive month of price growth.

Shelter prices continue to rise at a slower rate year-over-year in October (+4.8 per cent) compared to September (+5.0 per cent). Rent price growth slowed the most in Nova Scotia (+5.2 per cent) and Manitoba (+6.5 per cent).

Prices for food purchased from stores rose 2.7 per cent year-over-year in October, making it the third consecutive month that grocery prices increased at a faster pace than headline inflation. Other fresh vegetables (+7.3 per cent) and preserved fruit and fruit preparations (+7.6 per cent) were main drivers to the price acceleration.  Notably, a slowed price growth for fresh or frozen beef in October (+7.0 per cent) compared to September (+9.2 per cent), tempered the acceleration, among other food items.

Gasoline prices have seen a smaller year-over-year decline, dropping 0.4 per cent compared to a 10.7 per cent decrease in September. This smaller contraction in gasoline prices is partly due to a base-year effect in October 2023, when prices fell 6.4 percent month-over-month because of lower refining margins and weaker global oil consumption.

The national unemployment rate rose to 6.8 per cent in November, while the employment rate held steady at 60.6 per cent.

The national unemployment rate rose to 6.8 per cent in November, while the employment rate held steady at 60.6 per cent, unchanged from 60.6 per cent in October. Ontario’s unemployment rate increased 0.8 percentage points in November to 7.6 per cent, while unemployment in the Toronto Census Metropolitan Area (CMA) – which includes Vaughan – increased to 9.2 per cent.

November saw an increase in employment (+51,000, +0.2 per cent), following minimal change in October (+15,000, +0.1 per cent). The employment rate in November held steady with minimal changes at 60.6 per cent, after a decline in national employment for six consecutive months from May to October 2024.

Employment increased in wholesale and retail trade (+39,000; +1.3 per cent), construction (+18,000; +1.2 per cent), professional, scientific and technical services (+17,000; +0.9 per cent), educational services (+15,000; +1.0 per cent) and accommodation and food services (+15,000, +1.3 per cent). Over the same period, employment declined for manufacturing (-29,000; -1.6 per cent), transportation and warehousing (-19,000; -1.7 per cent) and natural resources (-6,300; -1.8 per cent).

Recent data demonstrates that employment rose among core-aged men (+45,000; +0.6 per cent), while employment fell among women aged 55 to 64 years old (-20,000; -1.3 per cent). The youth unemployment rate rose 1.1 percentage points to 13.9 per cent in November. This age group had the largest increases among the major age groups, with youth unemployment rate up 2.3 percentage points on a year-over-year basis.

Average hourly wages among employees increased 4.1 per cent (up $1.40 to $35.68) year-over-year in November, following a growth of 4.9 per cent in October (not seasonally adjusted).

National Real Gross Domestic Product (GDP) grew 0.1 per cent in September, after remaining essentially unchanged in August.

The national Real Gross Domestic Product (GDP) saw a slight increase in September by 0.1 per cent, after remaining essentially unchanged in August.

The services-producing industries saw a 0.2 per cent increase in September, driven in large part by increases in the retail and wholesale trade sectors, marking the fourth consecutive monthly increase. Goods-producing industries contracted 0.3 per cent in September, with mining, quarrying, and oil and gas extraction and the manufacturing sectors as the primary drivers of this decline.

In September, the manufacturing sector posted a 0.3 per cent decrease, making it the fourth consecutive month of decline in the sector. Higher durable goods manufacturing activity this month did not make up for the decline in non-durable goods manufacturing.

The food manufacturing subsector (-1.5 per cent) contributed the most to the decline in non-durable goods manufacturing, with chemical manufacturing (-1.8 per cent) contracting for the third month in a row, driven in large part by pharmaceutical and medicine manufacturing (-2.8 per cent).

Durable goods manufacturing rose 0.2 per cent in September, with growth led by transportation equipment manufacturing (+1.0 per cent). Production rose at manufacturing plants in motor vehicle (+3.2 per cent) and motor vehicle parts (+2.1 per cent) subsectors despite continued retooling activities in September.

The construction sector rose by 0.4 per cent in September for the second consecutive month. Repair construction led the growth with a 1.0 per cent increase, while residential building construction grew for the third consecutive month, up 0.4 per cent in September. The growth reflected higher activity in single family home and multi-unit structures construction in Ontario. Non-residential building construction rose 0.7 per cent for the second consecutive month following a period of four monthly contractions, with industrial and commercial building construction driving the increase in September.

The retail trade sector increased 1.0 per cent in September, representing its largest monthly growth rate since October 2023. The food and beverage stores subsector expanded 2.4 per cent, driven by higher retailing activity at beer, wine and liquor retailers. Higher activity for gasoline stations (+3.8 per cent) and building material and garden equipment and supplies dealers (+2.6 per cent), further contributed to the growth. Similarly, wholesale trade activity rose by 0.9 per cent in September, offsetting August’s decline despite contractions in five of nine subsectors this month. Miscellaneous wholesalers (+4.6 per cent), as well as motor vehicle and motor vehicle parts and accessories wholesalers (+3.2 per cent) were primary drivers to this growth.

The transportation and warehousing sector rebounded this month, expanding 0.7 per cent in September after impacts from wildfires in July and rail lockouts in August. Rail transportation partially rebounded from August’s contraction with a 6.3 per cent increase in September, as commodity and container carloading activity recovered this month. Transit ground passenger, as well as scenic and sightseeing transportation grew 3.7 per cent in September, reflecting a 5.0 per cent increase in urban transit and reaching a post-COVID-19 pandemic peak in ridership.

Advance information indicates that real GDP increased 0.1 per cent in October.  Increases in real estate and rental and leasing, transportation and warehousing and retail trade were partially offset by decreases in construction and mining, quarrying, and oil and gas extraction.

LOCAL TRENDS, INVESTMENTS, AND SUCCESS STORIES

The Vaughan Business and Entrepreneurship Centre experienced demand for consultations in other services, retail trade, and professional, scientific, and technical services industries in November.

Economic Development’s Small Business and Entrepreneurship top five industries seeking consultations in October were:

  1. Other services* (28 per cent)
  2. Retail trade (21 per cent)
  3. Professional, scientific and technical services (14 per cent)
  4. Arts, entertainment and recreation (7 per cent)
  5. Wholesale trade and education services (5 per cent)

*Other services include: repair centers for motor vehicles, pet care services, funeral, laundry, photo finishing, etc.

Held in Vaughan, the 12th annual Pentola d’Oro Awards gala celebrated best-in-class in the food and beverage industry.

November marked the 12th annual ICCO Unico Primo Pentola d’Oro Awards gala, celebrating the contributions to excellence, innovation, quality and authenticity in the food and beverage industry. Hosted in Vaughan, the Pentola d’Oro Awards brings together industry leaders from restaurateurs and suppliers to packaging innovators and media influencers.

Vaughan plays a central role in York Region’s agri-food sector, with notable industry concentrations including bakeries and tortilla manufacturing, sugar and confectionery product manufacturing, dairy product manufacturing and food merchant wholesalers. Vaughan is connected across the food and beverage supply chain, with access to the Ontario Food Terminal, Canada’s largest wholesale fruit and produce terminal, within a 20-minute drive from the City.

The recently announced $9 million federal funding for UBC’s Bridge to Red Seal project and Vaughan’s $26 million investment in LiUNA 183’s new training center address labour shortages in skilled trades.

The Government of Canada recently announced more than $9 million in funding for the United Brotherhood of Carpenters and Joins of America Canadian District (UBC) to support the UBC Bridge to Red Seal project. The project aims to support 1,500 internationally trained skilled workers to address significant labour shortages across the country.

Vaughan is at the heart of the next generation of talent in the skilled trades, as investments in Vaughan-based LiUNA 183 received $26 million in provincial funding to build a new training centre. Announced earlier this year, the investment will enable LiUNA 183 to train an additional 50,000 construction workers to support critical housing, infrastructure and industrial projects in the Greater Toronto Area (GTA) and beyond.

Vaughan-headquartered Longo’s named one of Canada’s Most Admired Corporate Cultures.

Longo’s, a national grocery chain with Vaughan-based headquarters, was named one of Canada’s Most Admired Corporate Cultures by Waterstone Human Capital. The rankings are part of a national program – now in its 20th year – recognizing Canadian organizations and CEOs for creating best-in-class cultures and performance.

Vaughan’s agri-food and food processing sector runs “farm to fork”, from more than 7,800 acres of farmland in use to a vibrant retailers and food services industry encompassing nearly 130 grocery and specialty food retailers, including Longo’s. Vaughan’s strengths as an advanced manufacturing hub translate to a destination of choice for food processing, with nearly half of York Region’s food processors located in Vaughan.